Which of the Following Is Most Likely to Lead to Inflationary

question 16

Multiple Choice

Which of the following is most likely to lead to inflationary monetary policy?

• A)declining oil prices
• B)resolution of conflict in the Middle East
• C)the enactment of a free-trade agreement with Mexico
• D)rising unemployment

---

Definitions:

Market Power

The ability of a company to manipulate price by controlling supply or dominating the market.

Nineteenth Century

The period from January 1, 1801, through December 31, 1900, marked by significant industrial, cultural, and political changes worldwide.

Oligopoly

A market structure characterized by a small number of large firms that dominate the market, often leading to limited competition.

Railroads

Transportation systems consisting of tracks on which trains travel to carry goods and passengers over long distances.